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Internet advertising revenue soared to a record high of US$31.7 billion in 2011, up 22 percent from 2010, according to a report released Wednesday by the Interactive Advertising Bureau and conducted by Pricewaterhouse Coopers.

Mobile advertising was the fastest growing of all segments, expanding by almost 150 percent to become a $1.6 billion industry.

The rate of growth is particularly impressive because digital advertising also shattered previous records in 2010. The industry grew by a larger percentage in 2011 than it did in 2010.

The industry continues to grow so rapidly because advertisers still have a way to go before they match consumers' embrace of Internet platforms, explained Sherrill Mane, the senior vice president of research and analytics at IAB.

"There's a fact of life called consumers. Consumers are using and embracing digital more and more, and fundamentally the advertising business is still playing catch-up. The money has to flow to where the folks are," she said.

Search advertising, digital video commercials and sponsorships grew as a percentage of the digital advertising market in 2011, according to the study. But mobile advertising was clearly the star.

Mane said that the explosion in mobile advertising reflects both the increasing popularity of smartphones and the relative newcomer status of the medium.

"For many reasons, one can assume that mobile will continue to grow at a rapid clip. One reason is that mobile is catching on with consumers, as well as with marketers and advertisers," she said.

However, "There's a proportion issue: It's not that mobile is outpacing all other digital so much as mobile is growing explosively from where mobile started," she added.

Internet advertising brought in almost half as much as all forms of television advertising last year, according to television data from Kantar Media.

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Internet ad revenue hit $31.7 billion in 2011, topping previous record

This post has been corrected as indicated below.

Internet advertising reached a record $31 billion last year -- a gain of 22% over 2010 spending, according to a report released Wednesday by the Interactive Advertising Bureau.

Advertising tied to Internet searches continues to dominate the category, accounting for 46 cents of every dollar spent online. Revenues for search advertising reached $14.8 billion in 2011, an increase of 27% from a year earlier, according to the IAB.

Mobile advertising showed the fastest growth -- amid the popularity of smartphones -- and the ability of marketers to deliver timely, relevant ads in a way that previously wasn't possible. The IAB reported that revenues rose to $1.6 billion in 2011, up 149% from the prior year.

"Clearly mobile has become a key category," said David Silverman of PricewaterhouseCoopers, in a briefing with the media Wednesday morning.

Another category showing significant growth is advertising associated with digital video. Revenue reached $1.8 billion last year, compared with $1.4 billion in 2010 -- representing a 29% year-over-year gain.

Retail advertisers continue to represent the largest buyers of Internet ads, accounting for about 22% of spending in 2011, according to the IAB.

[For the record, 10:52 a.m. April 18: A previous version of this post misidentified the Interactive Advertising Bureau as the Internet Advertising Bureau.]

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Internet advertising hits record $31 billion

This post has been corrected as indicated below.

Internet advertising reached a record $31 billion last year -- a gain of 22% over 2010 spending, according to a report released Wednesday by the Interactive Advertising Bureau.

Advertising tied to Internet searches continues to dominate the category, accounting for 46 cents of every dollar spent online. Revenues for search advertising reached $14.8 billion in 2011, an increase of 27% from a year earlier, according to the IAB.

Mobile advertising showed the fastest growth -- amid the popularity of smartphones -- and the ability of marketers to deliver timely, relevant ads in a way that previously wasn't possible. The IAB reported that revenues rose to $1.6 billion in 2011, up 149% from the prior year.

"Clearly mobile has become a key category," said David Silverman of PricewaterhouseCoopers, in a briefing with the media Wednesday morning.

Another category showing significant growth is advertising associated with digital video. Revenue reached $1.8 billion last year, compared with $1.4 billion in 2010 -- representing a 29% year-over-year gain.

Retail advertisers continue to represent the largest buyers of Internet ads, accounting for about 22% of spending in 2011, according to the IAB.

[For the record, 10:52 a.m. April 18: A previous version of this post misidentified the Interactive Advertising Bureau as the Internet Advertising Bureau.]

RELATED:

See the original post:
Internet advertising hits record $31 billion in 2011

WASHINGTON & GENEVA--(BUSINESS WIRE)--

The Internet Society today published the results of a study that demonstrates the far-reaching economic and societal benefits of establishing Internet Exchange Points (or IXPs) in emerging markets. The study, commissioned by the Internet Society and conducted by independent strategy and research consultancy, Analysys Mason, examined the critical cost and performance benefits of IXPs in Kenya and Nigeria two sub-Saharan countries that have been on the leading edge of Internet growth in Africa.

Analogous with the role that international airports play in airline traffic, IXPs serve as critical hubs for data traffic exchange in the global Internet infrastructure. Over 350 IXPs around the world enable local Internet Service Providers (ISPs) and Internet backbone carriers to efficiently and cost effectively exchange Internet traffic between them. Many emerging markets do not have well-established IXPs, forcing domestic Internet traffic onto long-distance international links, resulting in significantly higher costs and latency.

The new study quantifies for the first time how IXPs enable Kenya and Nigeria to save millions in telecommunications costs and raise additional revenues in these countries while simultaneously speeding local data exchange, and encouraging the development of locally hosted content and services. For example:

This study puts into clear context the commonly accepted but seldom quantified proposition that IXPs are essential for any country aspiring to tap into the global Internet economy, said Karen Rose, senior director of development strategy at the Internet Society. Offering more than just cost and performance benefits, well-run IXPs serve as a catalyst to dramatically enrich a countrys Internet ecosystem, opening a new world of possibilities with comparably minimal investment. We hope that this study will help inform the dialogue among government, business, and technology leaders of emerging countries still struggling with cost and bandwidth issues to show them, in no uncertain terms, the benefits IXPs can yield for developing the most fertile ground possible for Internet growth.

Michael Kende, Analysys Mason partner and lead author on the study, said, Thanks to the leadership of the Internet Society, this is a unique study that documents and quantifies the benefits of two growing and regionally important IXPs in sub-Saharan Africa. It demonstrates the central role these IXPs have had in developing the Internet ecosystems in each country and how they are paving the way for future growth, including for advanced services such as cloud applications.

Commenting on the study and the growth of the Internet in Africa, Fiona Asonga, chief executive officer of the Telecommunications Services Providers Association of Kenya (TESPOK), stated, "This year marks the 10th anniversary of KIXP and we are proud to have contributed to the tremendous growth of the Internet in Africa during that time. We are pleased that this independent study illustrates the practical value that KIXP currently brings to its members, as well as the important contributions it is making to the broader Internet economy in Kenya."

Muhammed Rudman, chief executive officer of the Internet Exchange Point of Nigeria (IXPN), shared his thoughts on the future of the Internet in the region. He commented, "The mission of IXPN is to localize Internet traffic and reduce routing costs, thereby improving the efficiency and effectiveness of the Internet in Nigeria. At the same time, our eyes are very much set towards the future of the Internet in the region. I believe we have only scratched the surface of what IXPN will be able to do for the growth of the Internet in Africa."

The study was conducted as part of the Internet Societys Interconnection and Traffic Exchange Programme, which aims to foster robust, efficient, and cost-effective Internet interconnection environments in emerging economies, and in furtherance of the Internet Societys overall mission to promote the open development, evolution, and use of the Internet for the benefit of all people throughout the world.

The full study is available for download at http://www.internetsociety.org/ixpimpact.

Originally posted here:
New Study Reveals How Internet Exchange Points (IXPs) Spur Internet Growth in Emerging Markets

Despite the warning of International Police Organization (Interpol) that internet hacktivist group Anonymous may try to shut down Internet service this weekend through Operation Blackout, hackers associated with Anonymous said that there is no truth to such claim.

Interpol Chief Ronald Noble warned about the alleged internet attack by Anonymous at the 13th DP Kohli memorial lecture on "Multijurisdictional Investigation: Operation Unmask" in the in New Delhi, India.He said, "Operation Global Blackout 2012 looks to shut down the internet for a whole day tomorrow (March 31) by disabling its core DNS servers, making websites inaccessible.

But Anonymous maintained that Operation Global Blackout was never an officially sanctioned plan.

News about a crippling attack on the internet surfaced last month when a document was posted on the website Pastebin, which in the past was often used by hackers belonging to Anonymous and Lulzsec, to communicate with the press.

The post read: "To protest SOPA, Wallstreet, our irresponsible leaders and the beloved bankers who are starving the world for their own selfish needs out of sheer sadistic fun, On March 31, anonymous will shut the Internet down," stated the note. It highlighted that internet can be shut down by attack on 13 root DNS servers that play a crucial role in making sure that web users reach their desired websites.

ut on its official Twitter account, Anonymous posted last March 29, "What is this #OperationGlobalBlackout nonsense? I thought we settled this back in February? It won't happen. Stop asking us about it! >.<

Yesterday, @youranonnews also said, "For the billionth time: #Anonymous will not shut down the Internet on 31 March. #OpGlobalBlackout is just another #OpFacebook failop. #yawn".

In another tweet, @youranonnews posted: Think for a moment: Why would #Anonymous shut down our playground, the Internet? Really, how would that help ANY of us?#NextQuestion

Another account (@AnonymousIRC), added, "Dear Netizens, Internet will remain online. And to the death we will defend it. Always. Sail strong and do not get distracted by trolls."

According to Mashables Alex Fitzpatrick," Anonymous wont probably shutdown the internet this weekend because Operation Blackout calls for a highly-focused Distributed Denial of Service (DDoS) attack on what it said are the Internets 13 root Domain Name System (DNS) servers.

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No Operation Blackout, internet stays online – Anonymous